DSM in the 2010 Connecticut Integrated Resource Plan (IRP)

Abstract

While demand-side management (DSM) has always been a con-
ceptual part of integrated resource planning (IRP), in practice it has not
always been an important focus. The current uncertainties facing sup-
ply resources and, in some cases, regulatory pressure (such as in Con-
necticut) are causing a resurgence of interest in demand-side alterna-
tives. The key questions regarding DSM resources include: What will
they actually cost? How quickly can they be deployed? and What will
be the ultimate customer penetration rates and program effectiveness?
IRP lays the groundwork for greatly increased levels of spending for
energy efficiency (EE), load management, and load response in Con-
necticut. Three scenarios were studied: (1) reference-level DSM (busi-
ness as usual), (2) targeted DSM (intermediate scenario), and (3) all cost
effective DSM. By 2020, the DSM savings in the all cost effective case
presented in the plan would reduce peak load growth by 1,095 MW and
provide electric savings of 5,910 GWh, due to aggressive implementa-
tion of both EE and load response programs. The development of the
DSM portion of the plan presented the electric utilities with several key
challenges. As more states consider similar legislation, there are many
important lessons that other states can learn through Connecticut’s ex-
perience.